Check Before You Invest : Metro Brands Ltd

BSE: 543426 NSE: METROBRAND ISIN: INE317I01021

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Metro Brands Ltd belong to?

Metro Brands Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Metro Brands Ltd a good quality company?

Metro Brands Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Metro Brands Ltd undervalued or overvalued?

Metro Brands Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Metro Brands Ltd a good buy now?

Metro Brands Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Metro Brands Ltd?

Metro Brands Ltd revenue growth is 6.3% for FY-2025, which is below its 5-year CAGR of 15.16%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Metro Brands Ltd?

Metro Brands Ltd Return on capital employed is 33.39% for FY-2025, which is in line with its 5-year historical median of 32.53%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Metro Brands Ltd?

Metro Brands Ltd Return on Asset is 10.78%, which is in line with its 5-year historical median of 10.85%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Metro Brands Ltd?

Metro Brands Ltd Return on equity is 20.16% for FY-2025, which is in line with its 5-year historical median of 20.36%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Metro Brands Ltd?

Metro Brands Ltd Cash conversion cycle is 41 days, above its 5-year historical median of 29 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.89	0.89
ROE	20.16	20.36
ROCE	33.39	32.53
Cash Conversion Cycle	41 days	29 days

Q.6 Gross Profit margin of Metro Brands Ltd?

Metro Brands Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.2% for FY-2025, which is in line with its 5-year median of 26.2%, indicating stable margins.

Q.7 Operating Profit Margin of Metro Brands Ltd?

Metro Brands Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.62% for FY-2025, which is in line with its 5-year median of 30.67% indicating stable margins.

Q.8 Net Profit Margin of Metro Brands Ltd?

Metro Brands Ltd Net Profit Margin is 14.27% for FY-2025, is below with its 5-year median of 15.82%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	26.2	26.2
Operating Profit Margin	30.62	30.67
Net Profit Margin	14.27	15.82

Q.9 Debt to Equity ratio of Metro Brands Ltd?

Metro Brands Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Metro Brands Ltd?

Metro Brands Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Metro Brands Ltd?

Promoters hold 71.80% of the Metro Brands Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Metro Brands Ltd vs industry peers?

Metro Brands Ltd revenue CAGR is 15.16%, compared to the industry median CAGR of 14.61%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	6.3	14.6
Gross Profit Growth	8.7	NAN
Operating Profit Growth	6.4	NAN
Net Profit Growth	-16.3	14.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.89	1.14
ROE	20.16	7.96
ROCE	33.39	12.62
Cash Conversion Cycle (days)	40.89	48

Valuation & price assessment

Q.1 Stock return of Metro Brands Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 3.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	3.4%	-6.8%

Q.3 Valuation ratios of Metro Brands Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	71.94	78.38	37.16
Price to Book	14.46	16.66	2.93
Price to Sales	10.32	13.45	1.30
EV to EBITDA	30.15	38.39	14.03

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